The bank has made required provisioning in advances in specific accounts so as to improve net NPA.

Indian Overseas Bank (IOB) on Wednesday reported a 154% jump in its net profit to Rs 376 crore for the second quarter, compared with Rs 148 crore in the corresponding quarter of the previous fiscal. The bank, which has just exited the prompt corrective action framework, has attributed the good set of numbers to strong performance in all relevant parameters.

Partha Pratim Sengupta, MD & CEO, said there has been a marked reduction in bad assets. Net NPA stood at 2.77% which was within the prescribed RBI guidelines, while gross NPA reduced by Rs 286 crore. The gross NPA ratios improved to 10.66% from 13.64% QoQ. The provision coverage ratio improved to 92%, against 91.56% in the previous quarter. The bank has made required provisioning in advances in specific accounts so as to improve net NPA.

Sengupta said the bank had total cash recovery of Rs 831.77 crore which includes recovery from tech write off of Rs 428.61 crore, against Rs 751.97 crore (including recovery from tech write off of Rs 233.74 crore) in June 2021.

The CASA improved to 42.57% , against 40.26% in the same period last year. Total CASA increased from Rs 92,436 crore to Rs 1, 06,806 crore while savings bank registered a 11.48% Y-o-Y growth.

Interest income stood at Rs 4, 254 crore for the quarter, against Rs 4,363 crore. The bank recorded a lower net interest margin (NIM) of 2.43% as against 2.57% in the corresponding quarter of the last fiscal.

Total business stood at Rs 4,90.408 crore, compared with Rs 4,78,365 crore in the year-ago period. Total deposits stood at Rs 2,50,890 crore, against Rs 2,42,941 crore as on June 30, 2021.

Gross advances stood at Rs 1,46,940 crore during the latest quarter, compared with Rs 1,38,944 crore as on June 30, 2021. The bank increased its exposure to the retail and agri sectors and rebalanced advances by consciously reducing the stressed sector in the corporate segment.